What is Noodles & Company permitted to do regarding a proposed supplier's facilities when a franchisee requests approval of a new supplier?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ided pursuant to the Operations Manual (which may include reasonable financial, operational and economic information regarding its business), and (iii) identify the authorized Non-Proprietary Products desired to be purchased from such supplier. We shall, upon your request, furnish specifications for such Non-Proprietary Products if such are not contained in the Operations Manual. We shall not be obligated to disclose the terms and conditions, including the pricing, to anyone as to Proprietary or Non-Proprietary Products. We may thereupon request that the proposed supplier furnish us at no cost to us product samples, specifications and such other information as we may require. We, or our representatives, including qualified third parties, shall also be permitted to inspect the proposed supplier's facilities and establish economic terms, delivery, service and other requirements consistent with other distribution relationships for Noodles & Company Restaurants.
- (c) We will use our good faith efforts to notify you of our decision within 120 days after our receipt of product samples from the proposed alternative supplier and all other requested information and will strive to complete our review within 60 days. Nothing in this article shall require us to approve any supplier and, without limiting our right to approve or disapprove a supplier in our sole discretion, you acknowledge that it is generally disadvantageous to the system from a cost and service basis to have more than one supplier in any given market area and that among the other factors we may consider in deciding whether to approve a proposed supplier, it may consider the effect that such approval may have on the ability of us and other Area Operators to obtain the
lowest distribution costs and on the quality and uniformity of products offered systemwide. We may also determine that certain Non-Proprietary Products (e.g.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, when a franchisee proposes a new supplier for Non-Proprietary Products, Noodles & Company, or its representatives, including qualified third parties, are permitted to inspect the proposed supplier's facilities. This inspection aims to establish economic terms, delivery schedules, service standards, and other requirements that align with the distribution relationships of other Noodles & Company Restaurants.
Furthermore, the franchisee or the proposed supplier is responsible for covering all reasonably anticipated costs associated with reviewing the supplier's application. These costs include current and future expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products. Additionally, the franchisee or supplier must cover all product testing costs incurred by Noodles & Company with third parties.
Noodles & Company will use good faith efforts to notify the franchisee of their decision within 120 days after receiving product samples and all other requested information from the proposed supplier, striving to complete the review within 60 days. However, Noodles & Company is not obligated to approve any supplier and may consider the potential impact on distribution costs and product uniformity across the Noodles & Company system when making its decision. They may also limit certain Non-Proprietary Products to specific designated brands.